HERACLES Group of Companies today announced sales of ? 448 million for the first nine months of 2003, up 5% compared with the same period of the previous year.

Total sales volume of cement and clinker increased by 6% in both domestic and export market.

Operating expenses decreased by 5% compared with the same period of 2003, owing mainly to the focus of Management on operating cost cutting as well as to the impact of last year's voluntary redundancy scheme.

Operating income of the Group amounted to 85.0 million euros, up 7% compared with the same period of 2002, reflecting the aforementioned increase of sales volume and reduction of operating expenses. Profit before tax was at the level of 83.0 million euros compared to 49.7 million euros in the same period of the previous year that had been impacted by a provision of 19.6 million euros regarding staff termination indemnities.

HERACLES Group of Companies, a member of Lafarge, has 3 cement plants in Greece. One in Volos, which is the largest cement plant in Europe, one in Milaki Evia and one in Halkis Evia. The total production capacity of the Group is 9.6 million tonnes annually which makes it the largest cement producer in Greece. HERACLES Group owns a number of subsidiary companies that are active in the production and sale of ready-mix and aggregate products (Lafarge Beton), construction and instalment of metallic constructions, industrial automation and production control systems, and research and development. In 2002, Heracles posted sales of 558 million euros.

Lafarge is the world leader in building materials, and employs 77,000 people in 75 countries. The Group holds top-ranking positions in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge posted sales of 14.6 billion euros in 2002.